Only days apart, Sacramento Elite Patrol and Bottles & More both closed on separate warehouse deals to expand their businesses in the midst of a struggling economic recovery. One business acquired its very own office/warehouse building in South Sacramento totaling 9,266 sq.ft. with SBA loan financing, while the other jumped from a home based business operation into a 10,872 sq.ft. leased warehouse space in West Sacramento. Clearly, there are some bright spots in the market if you know where to look.
Locally owned Armstrong Plumbing has faithfully served Sacramento commercial and residential customers for 50 years. What better way to celebrate its golden anniversary than by acquiring its very own commercial building. The new facility, at 2551 Albatross Way, is only 1/3 mile away (as the crow files) from the company’s former location, just on the other side of Capital City Freeway (off El Camino Ave).
East West Commercial Real Estate is a boutique brokerage firm based in Orange County with over twenty agents in five states. After leaving a long commercial real estate lending career with Wells Fargo, Brian Jacks (Northern California Regional Vice President of East West Commercial) launched the company’s Sacramento office in November 2011. Considering the local economy is still weak, there has been sufficient activity to keep busy with several high profile commercial and non-profit lease transactions, such as Drewski’s Hot Rod Kitchen, Hacker Lab, Jackson Sports Academy, Fitness System, Curves, Streamline Church and Cornerstone Christian School.
On Sutterville Road in Land Park is a two story office building located right in between the Sacramento Zoo, La Bou Café and Sprouts Market. Until recently, this 40,000 square foot building had become almost entirely devoid of tenants and business activity due to the severe recession. However, it’s not the first time this particular property has succumbed to the pressures of a deteriorating local economy.
Click here for related article in Sacramento Business Journal.
It’s still a tenant’s market out there… and its been that way for quite some time here in the Sacramento area. Commercial property owners know all to well that savvy tenant’s have the upper hand when it comes to negotiating new or renewal leases. However, not being armed with the right information (and trying to go it alone) can lead to less than stellar results.
The Sacramento Business Journal discussed in a recent article how Rob Fauble, owner of The Beat (a record store in Midtown Sacramento), lost his commercial property lease after 19 years in business at 1700 J Street. Although Rob make the right decision to hire a local Sacramento commercial real estate broker, he was still unsuccessful in cutting a deal with the landlord to let him stay. Occasionally, a commercial property owner has the opportunity to upgrade a tenant with a national company, who can pay more rent and create value for the property… such as the case with The Beat’s former location.
More often that not, however, in this current market, tenant’s hold the necessary leverage to negotiate highly favorable lease terms for commercial property throughout the greater Sacramento area. Continue reading below for a list of do’s and dont’s to learn how tenants can best prepare for this important task.
Living in Sacramento, its easy to take for granted that we actually reside in the State Capitol of California, which represents the 9th largest economy in the entire world. At times, a healthy reminder is in order to draw attention to this remarkable privilege that we all share. Important matters are considered and decided every day inside the venerable halls of the State Capitol. We are certainly fortunate to now have our very own local correspondent, Christopher Arns (Sacramento Business Journal), who has already written over 40 stories covering legislative activities surrounding the State Capitol since January.
It is incumbent upon citizens to communicate with legislators to ensure their voices are heard. It is within this context I participated last week in the 4th Annual Legislative Summit at the State Capitol, hosted by the California Asian Chamber of Commerce. Pat Fong Kushida (President & CEO of the CalAsian Chamber) led four teams who met with over 40 legislative offices to discuss pro-business issues including workforce development, taxation, economic development, and regulatory reform. It was a terrific day with open dialogue and a distinct willingness to come together.
One such meeting took place with Senator Jim Nielsen (see picture above), where team representatives connected on a personal level, sharing concerns and ideas for improvement in various areas. This scene repeated itself many times throughout the day as we walked the halls, transitioning from one meeting to the next. In a fitting culmination of events, the CalAsian Chamber lobby teams capped off the evening with a tasteful reception with dozens of legislators and staffers, along with community and business leaders.
Local Sacramento food truck operator, Andrew Blaskovich (aka “Drewski”), has been on the Sacramento scene for over two years now, serving up gourmet sandwiches to hungry crowds. With well over 15,000 Twitter and Facebook followers, he is most certainly a force to be reckoned with and has been recognized by Food Network as one of the Top 10 food truck operators in America. Drewski’s has received rave reviews in local print and media and is currently ranked #1 on the KCRA “A” List and was voted #1 best Food Truck by Sacramento News & Review.
In a growing trend, the success of food truck operators has convinced some to open brick-and-mortar locations as well. For Blaskovich, his foray into the brick-and-mortar restaurant business started with a Midtown Sacramento commercial property operated by Republic, a large sports bar, located across from the Sacramento Memorial Auditorium. He partnered with the owners to provide his signature dishes and experienced tremendous success ever since. Drewski’s second brick-and-mortar location is essentially a small café positioned within the lobby of a commercial office building on Iron Point Road in Folsom. However, Drewski’s third brick-and-mortar really takes the cake.
Comstock’s Magazine published a terrific article in this month’s edition discussing the need for Sacramento commercial property landlords to relax long-standing tenant requirements for attracting startup tech companies that desperately need space to foster innovation. The article explains how Hacker Lab, a non-profit technology incubator, recently expanded its commercial space by more than 10x by relocating to a Midtown Sacramento office / warehouse building that lends itself to creative work space. Sacramento commercial real estate broker Brian Jacks, who handled the lease transaction, was quoted in the article as saying “it wasn’t an easy deal, but fortunately the landlord was willing to take a chance.” A few short months later, Hacker Lab finds itself at the epicenter of a movement that is culminating with Startup Weekend, a global event in local cities that brings programmers, designers and entrepreneurs together to launch their own startup company in 54 hours. Excitement is building. The City of Davis recently announced a new staff position called ‘Chief Innovation Officer’ that was assumed by industry veteran Rob White. White toured a mixed-use commercial building last week, located just one block from the U.C. Davis campus, which he agrees would be a perfect fit for a Hacker Lab type organization. Students and industry professionals need a place other than coffee shops where they can meetup to collaborate on technology and innovation projects that will help take the Sacramento region to the next level. Click here for related article.
Sacramento commercial real estate investors who own property near the proposed site of the Downtown Arena are now one step closer to potentially significant increases in value. The Sacramento City Council voted 7-2 in favor of approving the arena financing proposal, which creates the opportunity for investors to form a competing bid to acquire the Sacramento Kings. News 10 caught up with Sacramento commercial real estate broker Brian Jacks to find out what this could mean for commercial properties within the immediate vicinity of the proposed arena. Click here for News 10 story
It’s always nice when a plan comes together. East West Commercial Real Estate of Sacramento helped Jackson Sports Academy (JSA) relocate into a 72,000 sf building at McClellan Park in December 2012. As a result, JSA’s non-profit arm, Jackson Sports For Athletes, has been able to expand its scholarship program to include recipient Hannah Heckman, whose story was recently shared in a feature article by The North Sac News.
In addition to providing assistance for individual players, JSA’s community outreach regularly provides sport court facilities for local charter school students, enabling them to accumulate physical education credits. One such beneficiary of this program is Community Collaborative Charter Schools (CCCS), who practically shares a parking lot with JSA at McClellan Park, creating much improved access to the program.
Other related programs offered through JSA include Harold Pressley’s Treat’em Like A King (TLK Foundation). Pressley is a former Sacramento King, who partners with JSA to host basketball camps, which introduce at-risk and disadvantaged youth to sporting opportunities that would otherwise not be available to them.
JSA is a true partner in the community and is to be commended for its excellence and dedication to fostering opportunities for local youth to achieve their dreams.